Definition :
MSME is a sector that empowers entrepreneur's which provide employment opportunities to the people of India. It is classified into two classes.
1. Manufacturing Enterprises:
They refer to the enterprises engaged in the manufacturing or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951. The manufacturing enterprises are defined in the terms of investment in plant and machinery.
2. Service Enterprises:
They refer to the enterprises engaged in providing or rendering of services. The limit of investment in plant and machinery/equipment for manufacturing/Service Enterprises is notified as under.

Enterprise	Manufacturing sector	Service sector
	(The limit for investment in plant & machinery)	(The limit for investment in Equipments)
Micro enterprises	Does not exceed Rs. 25 lakhs	Does not exceed Rs.10 lakhs
Small enterprises	More than Rs.25 lakhs but not exceeding Rs.5 crores.	More than Rs.10 lakhs but not exceeding Rs.2 crores.
Medium enterprise	More than 5 Crores but not exceeding Rs.10 crores	More than Rs.2 crores but not exceeding Rs.5 crores

Features of Internal Trade:
The following are the features of internal trade
1. The Buying and Selling of goods takes place within the boundaries of the same country.
2. Payment for goods and services is made in the currency of the home country.
3. It involves transactions between the producers, consumers and the middlemen.
4. It consists of a distribution network of middlemen and agencies engaged in  exchange of goods and services.
5. In home trade, the risk of transportation is very less when compared to Foreign Trade.
6. In home trade, the laws prevailing in that country only have to be followed.
7. The aim of home trade is to provide the goods and services economically.
8. Goods must be a part of domestic production.
9. Goods must be purchased from an individual or a firm established within a country.
10. Goods can be delivered using locally available modes of transports.
11. It does not involve any customs import duty, but buyers needs to pay the taxes like GST.

Disadvantages:
(i) Economic dependence:
(1) International Trade is more likely to make the country too much dependent on imports from foreign countries.
(2) The former may not take any efforts to produce goods and services indigenously to substitute imported goods and becoming self sufficient.
(3) As a result, the importing country may become economically slave to exporting country and end up becoming colony of exporting country.
(ii) Inhibition of growth of home countries:
(1) International business may discourage the growth of indigenous industries.
(2) Unrestricted imports and severe competition from foreign companies may ruin the home industries altogether.
iii) Import of Harmful Goods:
International business may lead to import of luxurious goods, spurious goods, dangerous goods, etc. It may harm the well-being of people.
(iv) Shortage of essential goods in home country:
Moreover, the export of essential commodities out of the greed of earning more foreign exchange may result in an absolute shortage of these goods at home country and people may have to buy these commodities at an exorbitant price in the local market
(v) Misuse of natural resources:
(1) Excessive export of scarce natural resources to various countries across the world may lead to faster depletion of the resources.
(2) This in turn may bring about ecological disaster in the country from which it is exported.
(vi) Political exploitation:
(1) International business may create economic dependence among the countries which may threaten their political independence.
(2) The MNC s may influence the policy decision of the government to their favour.
(3) In due course of time they may dictate terms to administrators of nation by the strength of their money power.
(4) For Example Britishers came to many countries as mere traders and ultimately colonized those countries and ruled them for centuries.
(vii) Rivalry among the nations:
(1) Acute competition for exports may lead to rivalry among the nations.
(2) This may lead to conflict of interest among the countries, and end up in wars among them.
(viii) Invasion of culture:
(1) International business may result in invasion of country's culture.
(2) Younger generation is more likely to imitate foreign culture and buy goods and services beyond their means to gain acceptance in the affluent section of society.
(3) This will ruin the conventional life style of the society.

(i) To the Society and Country :
1. Unified common national market will attract more foreign investment.
2. GST has integrated the economy of all states and union territories.
3. It brings parity in taxation among imported goods and Indian manufactured goods.
4. All imported goods will be charged with IGST which will be more or less equivalent to the total of CGST and SGST levied on manufactured goods.
5. Removal of several taxes will make the price of Indian products more competitive at world market
6. It will boost manufacturing, export, and GDP leading to economic growth through increase in economic activity
7. Creation of more employment opportunities which will result in poverty eradication.
8. It will bring more tax compliance (more taxpayers) and increase revenue to the Government.
9. It is transparent and will improve India's ranking in the 'Ease of Doing Business' in the world.
10. Uniform rates of tax will reduce tax evasion and rate arbitrage between States.
(ii) To the business community:
1. Simpler tax system with fewer exemptions 17 taxes were abolished and one tax exists today.
2. Input tax credit will reduce cascading effect of taxes. Reduction in average tax burden will encourage manufacturers and help "make in India" campaign and make India as a manufacturing hub.
3. Common procedures, common classification of goods and services and timeline will lend greater certainty to the taxation system.
4. GSTN facility will reduce multiple record keeping, lesser investment in manpower and resources and improve efficiency.
5. All interactions will be through common GSTN portal and will ensure corruption free administration
6. Uniform prices throughout the country Expansion of business to all states is made easy.
(iii) To the consumers:
(1) Input tax credit allowed will lower the prices to the consumers.
(2) All small retailers will get exemption and purchases from them will cost less for the consumers.

 Sl.No   Basis   Direct Taxes   Indirect Taxes    1  Meaning  It is a systematic record of all Economic transactions happened between the resident of one country and resident of foreign countries during a particular period. Balance of Trade is a statement showing net effect of Export and Import of a Country.   2  Nature of Transactions recorded   It records both the transactions relating to goods and services.  It records only transactions relating to merchandise i.e. goods.   3  Capital Transaction It records Capital transactions It does not record Capital transactions   4  Structure It includes balance of Trade, balance of services, balance of unilateral transfers and balance of Capital transactions It is a part of Current Account of Balance of payments.   5  Net position It always remains balanced in the sense that receipt side is made equal to payment side. It may be at favourable or unfavourable or in equilibrium state   6  Indicator of Economic Status It is a true indicator of Economic performance of an Economy. It is not a true indicator of Economic prosperity or Economic relations of country.   7  Correcting unfavourableness  Unfavourable balance of payment leads to deficit in balance of payment situation. Unfavourable balance of trade can be converted into favourable balance of payment.

Foreign currency convertible Bond (FCCB) is a special type of bond issued in the currency other than home currency. In other words, companies issue Foreign Currency convertible bonds to raise money in Foreign Currency.
Features of FCCBs are given below:
1. FCCB is issued by an Indian company in foreign currency.
2. These are listed and traded in foreign stock exchange and similar to the debenture.
3. It is a convertible debt instrument.
4. It carries interest coupon.
5. It is unsecured.
6. It gives its holders the right to convert for a fixed numbers of shares at a predetermined price.
7. It can be converted into equity or depository receipt after a certain period.

All parties to a contract are expected to perform their promises. When one party refuses to perform his promise, then the breach of contract takes place. The other party or parties are called aggrieved or injured party or parties. There are various types of remedies for the injured parties as follows:
1. Recission of contract
2. Claim for specific performance.
3. Claim for injunction.
4. Claim for quantum merit and
5. Claim for damages.
(1) Recission of contract:
(a) In case of breach of contract by one party, then the other parties may rescind the contract and thereby the party is absolved from his all obligations under the contract.
(b) For Example M promises N to supply a motor car on 1^st January 2017, and N promises to pay for the Motor car on 1^st January 2017. N is absolved from paying its price.
(2) Claim for the specific performance or suit for the specific performance:
In some specific cases if the damages are not the adequate remedy, then the court can direct the party in breach for the specific performance of the contract. In such case, the promise is carried out as per terms and conditions of the contract.Generally in the following cases, the court grants specific performance
1. When the act agreed to be done is such that compensation in money for its non-performance is not.sufficient.
2. When it is probable that compensation in money cannot be received for the non- performance of the act agreed to be done.
3. When there is no standard for ascertaining the actual damage caused by the non performance of the act agreed to be done.
On the other hand, the court does not grant specific performance in the following cases:
1. Damages are an adequate remedy
2. The contract is not certain
3. The contract is inequitable to either party
4. The contract is of revocable nature
5. The contract is made by the trustee in breach of trust
6. The contract is of personal nature i.e, contract to marry
7. The contract made by a company ultra-vires of its Memorandum of Association
8. The court cannot supervise its carrying out
(3) Claim for injunction or suit for an injunction:
Injunction is an order passed by a competent court restraining a person from doing some act. Injunction can be defined as a mode of securing the specific performance of the negative terms of the contract. Negative terms of the contract imply doing something, which a party has promised not to do. Injunction is an order which is granted by the court retraining the person to do what he had promised not to do.The court may order injunction in the following cases:
1. if the contract is voidable.
2. if the contract becomes void or
3. on discovering the contract as void.
(4) Claim for Quantum meruit:
The claim for quantum meruit may arise if a contract performed by one party has become discharged by breach of the other party. The meaning of the phrase quantum merit is 'as much as earned'. The claim is not for the original contract that has been discharged or void, but on an implied promise by the other party to pay for what he has done. Quantum merits arises in the following circumstances.
1. If a contract is found to be void.
2. If something is done without any intention to do so gratuitously.
3. If one party abandons or refuses to perform the contract.
4. If a contract is divisible.
5. If a contract is performed badly.
(5) Claim for damages:
Damages are monetary compensation awarded by the court to the injured party for the loss or injury suffered by him. As per the contract, one party can claim damages if the other parties breach the contract. The main purpose of awarding the damages is to make good the loss suffered by him. It is known as the doctrine of restitution. The Section 73 of the Indian Contract Act, 1872 deals with the compensation for loss or damages caused by a party for breach of contract.There are mainly four types of damages. Such as:
(i) Ordinary damages
(ii) Special damages
(iii) Vindictive or exemplary damages and
(iv) Nominal damages.

Income includes the followings :
(i) Profits and gains of business or profession
(ii) Dividend
(iii) Voluntary contribution received by a charitable/religious trust or university / educational institution or hospital/electoral trust.
(iv) Value of perquisite or profit in lieu of salary taxable U/S 17 and social allowance or benefit specifically granted either to meet personal expenses or for performance of duties of an office or an employment of profit.
(v) Export incentives, like duty draw back cash compensatory support, sale of licenses, etc.
(vi) Interest, salary, bonus, commission or remuneration earned by a partner of a firm from such firm.
(vii) Capital gain chargeable U/S 45
(viii) Profits and gains from the business of banking carried on by a co-operative society with its members.
(ix) Winning from lotteries, cross word puzzles, races, including horse races, card games, and other games of any sort or from gambling or betting of any form or nature whatsoever.
(x) Deemed income u/s 41 or 59.

Functions Of IBRD:
The main functions of World Bank are as follows:
(i) Assisting reconstruction of war-affected countries.
(ii) Promoting economic growth and balanced growth of international Business.
(iii) Promoting infrastructural facilities like energy and transportation, road development, etc. in member countries.
(iv) Encouraging agricultural and industrial development in developing countries by providing adequate resources.
(v) Providing resources for promoting sanitation, education, healthcare and small-scale enterprises in member countries.
(vi) Improving standard of living of people of member countries by providing assistance' by removing poverty, raising productivity, providing technical support and conducting research and development.

(i) A consumer co-operative store is a retail organisation owned, managed, and controlled by the consumers themselves to obtain products of daily use at reasonable low prices.
(ii) Its objective is to eliminate profits to middlemen by establishing a direct contact with the manufacturers.
(iii) People belonging to middle and low income groups, at least 25 persons have to come together to form a voluntary association and get it registered under the Co-operative Societies Act.
(iv) The Capital of a Co-operative Store is raised by issuing shares to members.
(v) The management of the store is democratic and entrusted to an elected managing committee, where one man one vote is the rule.
(vi) The cooperative stores are very famous in Tamilnadu.
(vii) For example, Kamadhenu and Chinthamani cooperative supermarkets in Chennai, Karpagam in Vellore, etc.

Under Section 46, performance within a reasonable time:
According to Section 46, a promisor is to perform his promise within a reasonable time.
Under Section 47, specified time and place for performance:
If the promise is to be performed on a certain day, the promisor may undertake to perform it without application of the promisee
Under Section 48, performance on a certain day:
If the promise is to be performed on a certain day the promisor may undertake to perform it after the application by the promisee to that effect.
Under Section 50, performance is prescribed by the promisee:
According to Section 50, the performance of any promise may be made in any manner or at any time, which the promisee prescribes.

(a) Owner's Funds:
Owner's Funds means funds which are provided by the owner of the enterprise who may be an individual or partners or shareholders of a company. The profits reinvested in the business comes under owners funds. These funds are not required to be refunded during the life time of business enterprise. It provides the owner the right to control the management of the Enterprise.
(b) Borrowed Funds:
The term 'Borrowed Funds' denotes the funds raised through loans or borrowings. For Example: Debentures, Loans from banks and Financial Institutions, Public Deposits, Trade Credit, Lease Financing commercial papers, Factoring; etc. represents borrowed funds.
1. These borrowed sources of funds provide specific period before which the fund is to be returned.
2. Borrower is under legal obligation to pay interest at given rate at regular intervals to the lender.
3. Generally borrowed funds are obtained on the security of certain Assets like bonds, land, building, stock, vehicles, machinery, document of title to goods etc.

The services rendered by retailer to the consumers as follows:
(i) Regular supply of goods :
(1) Retailers maintains a ready stock of various products of different manufacturers for sale to consumers.
(2) This enables the buyers to buy products as and when needed.
(ii) New products information:
The retailers provide important information about the new arrival of products through their personal selling efforts and effective display of products.
(iii) Credit Facilities :
Sometimes retailers provide credit facilities to their customers and enable them to increase their level of consumption.
(iv) Wide Selection:
(1) Retailers generally keep stock of variety of products of different manufacturers.
(2) This enables the consumers to make their choice out of wide selection of goods.
(v) Miscellaneous service
(1) Retailers provide free door delivery services to the customers.
(2) They provide after sales service to customers.
(3) They allow cash discount on their sales.

On the Basis of the validity:
1. Valid contract :
An Agreement which fulfils all the essential elements prescribed by law on the basis of its creation. For example: 'S' offers to sell his car for Rs 2,00,000 to 'T'. 'T' agrees to buy it. It is a valid contract.
2. Void Contract (2(j)):
A contract which ceases to be enforceable by law. A contract which does not satisfy any of the essential elements of a valid contract is said to be Void. For example A contract between drug dealers to buy and sell drugs is a void initio Contract.
3. Voidable Contract 2(i):
An agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract. This is the result of coercion, undue influence, fraud and misrepresentation.
4. Illegal Contract:
It is a contract which is forbidden by law. All Illegal agreements are Void but all void agreements or contracts are not necessarily illegal. Contract that is immoral or opposed to public policy are illegal in nature.
i. Unlike Illegal agreements there is no punishment to the parties to a void agreement.
ii. Illegal agreements are. void from the very beginning but sometimes valid contracts may subsequently become void.
5. Unenforceable Contract:
Where a contract is unenforceable because of some technical defect i.e. absence in writing barred by limitation, etc. If the parties perform the contract it will be valid, but the court will not compel them if they do not.

(i) Documents Related to Goods :
(1) Indent
(2) Credit of Origin
(3) Certificate of Inspection
(ii) Documents Related to Shipment:
(1) Mate's Receipt
(2) Shipping Bill
(3) Shipping Order
(4) Bill of Lading
(5) Marine Insurance Policy
(6) Consular Invoice
(7) Railway Receipt / Lorry Receipt
(iii) Documents Related to Payments :
(1) Letter of Credit
(2) Commercial Invoice
(3) Bills of Exchange
(4) Bank Certificate of Payment.